Qatar charts second natural gas boom as Saudis try to tighten the noose
Qatar’s neighbors are trying to isolate it from the outside world by cutting off transport and diplomatic links. There’s one major area where their ostracism campaign is falling short: energy. Qatar is the world’s fourth-biggest energy supplier and wealthiest country by per capita income. It pumps more oil and gas than Rosneft PJSC or Exxon Mobil Corp. and is the biggest producer and seller of liquefied natural gas. Saudi Arabia and its allies accuse the sheikhdom of funding terrorism and maintaining overly cordial ties with regional rival Iran. The allegations, which Qatar denies, pit Saudi Arabia, the world’s largest crude exporter and biggest supplier in the Organization of Petroleum Exporting Countries, against the group’s smallest Arab producer. Now Qatar is doubling down on its main asset, the North Field, announcing plans to boost production at the world’s largest offshore gas deposit. Located in the Persian Gulf, the field straddles Qatar’s maritime border with Iran, which refers to its side of the reservoir as South Pars. Paris-based Total SA, which has stakes in Qatari LNG projects and will develop the nation’s Al Shaheen oil field, signed a contract on Monday to boost output at South Pars. State-owned Qatar Petroleum will boost its production by 30 percent to 100 million tons a year within seven years from about 77 million tons currently, Chief Executive Officer Saad Sherida Al Kaabi said Tuesday. Qatar has more than tripled output of gas over the last decade even as its oil production slumped. If the country adds all the planned new LNG capacity, it will be the world’s top seller of the fuel in spite of expected increases in the U.S. and Australia. Gas, condensate, crude make Qatar the world’s fourth-biggest energy supplier Qatar Petroleum has partnered with Exxon Mobil, Royal Dutch Shell Plc, Total and ConocoPhillips — as well as with Japanese customers Mitsui & Co. and Marubeni Corp. — to build 14 plants that chill gas into a liquid for shipment to Asia and Europe. Qatar Petroleum, through its LNG-producing divisions Qatargas and RasGas and other investments in related businesses, holds stakes in companies that extract, process, ship and receive gas. This integrated supply chain helps make Qatari LNG the cheapest in the world to produce, an advantage QP plans to exploit as competitors in Australia and the U.S. try to dethrone it as the top producer by volume. Qatar supplies 30 percent of the world’s LNG, according to the International Group of Liquefied Natural Gas Importers. It’s the main supplier to India, second-biggest to China, and third-largest to Japan, according to customs and trade data compiled by Bloomberg. Qatar also sells natural gas in the Middle East, including to the U.A.E. and Egypt, two countries targeting it in their regional dispute. Shipments of LNG to Egypt have continued during the crisis, as have supplies of gas via pipeline to the U.A.E. and Oman. Qatar’s crude production dropped to about 620,000 barrels a day from a peak of 880,000 barrels daily in 2008, according to data compiled by Bloomberg. The sheikhdom is now the fourth-smallest producer in OPEC. However, Qatar’s production of other liquids including condensate, a light oil found in hydrocarbon reservoirs, surpassed its output of crude in 2010. These gains — in addition to LNG, pipeline exports of gas to the United Arab Emirates and Oman, and gas-to-liquids fuels produced in partnership with Shell and Sasol Ltd. — far exceeded the decline in crude output and have generated financial surpluses that make Qatar one of the world’s top global investors. Qatar churned out 632,300 barrels a day of refined products including naphtha and jet fuel in 2016, mostly for export, according to OPEC’s annual report. The country exported 503,400 barrels a day of crude last year, mostly to Asia, and all of the 568,100 barrels a day of refined products it sold went to the region, the OPEC data show. The country is also the single largest exporter of helium — a gas with uses ranging from balloons to magnetic resonance imaging equipment — and supplies about 30 percent of the global market, according to an IHS Markit report emailed on June 23. The regional dispute disrupted its normal export route for helium to buyers in Asia: by truck across the land border with Saudi Arabia and then to Dubai’s Jebel Ali port in the U.A.E. for onward shipment by sea. Qatar is now shipping helium on tankers, QP’s Al Kaabi said. Peter Holland Jersey
Can’t blame petrol dealers for theft, says association
The Petroleum Dealers Association (PDA), Aurangabad, on Wednesday said the actual ownership and maintenance of fuel stations are with petroleum companies and the proprietors are just custodians. The association’s reaction was in view of the series of recent raids on fuel stations conducted by the Thane police’s crime branch, which found malpractices at those places. “It is inappropriate to blame the pump owners generally for unethical and illegal practices,” the PDA office bearers said. “Technicians appointed by the oil marketing companies (OMCs) maintain the fuel stations without the knowledge of dealers.” Aqeel Abbas, secretary of PDA, said, “We appreciate the initiative of the Thane crime branch and support them, but the alleged theft committed by some should not be used as a tool to harass us and tarnish our image.” He said that during the annual calibration of the dispensing units, the technician issues an audit report after thorough inspection. PDA office bearer Viren Patel said that though the weights and measures department relies on the report of the technicians, they also verify the delivery by the dispensing unit using 5 litres as a standard mark. The PDA members on Wednesday reached out to the DSO and made a representation stating that directives be issued to the OMCs for installation of additional seals on the dispensing pumps, making it impossible for anyone to even open it. The PDA said that reverification of the dispensing unit should be made free of cost, as the dealers have to unnecessarily face a financial burden. The dispensing units come with an approved error-factor of 0.5%. The PDA reiterated that the petrol dealers follow business ethics and that they should not be harassed just because a handful of them have been caught indulging in malpractices. Tyler Graovac Jersey
Anti-ONGC stir continues in TN; no pipeline crack, says DC
Amid continuing protest against ONGC’s oil exploration project in a village near here, the district administration today said there was no crack in the oil pipeline and offered to hold talks with the locals. The clarification from district Collector A Annadurai came even as shops in Kathiramangalam remained closed for the sixth day protesting the alleged leak in the ONGC pipeline. The Collector said there was no crack in the ONGC pipeline and added that officials were checking if oil had leaked and got mixed with drinking water. He also offered to hold talks with the locals over the issue. Meanwhile, around 500 villagers blocked a main road and alleged that water in one of the streets was contaminated and smelt of petrol, police said. Deputy Superintendent of Police Venkatesan rushed to the spot and held talks with them, following which the protest was withdrawn. In a related development, around 300 weavers from the village, undertook a protest fast, seeking release of those arrested in connection with the violence on June 30, police said. They also demanded that ONGC stop exploration work in the the village and its workers leave the place. About 50 college students also participated in the fast. Residents in Kathiramangalam have been up in arms against the leak in an ONGC pipeline and a protest had turned violent on June 30, leading to use of “minimum force” by police, which was criticised by opposition parties in the state. Bobby Wagner Authentic Jersey
GEECL To Invest $1BN IN Indian CBM Sector
India’s oldest coalbed methane producer Great Eastern Energy Corporation (GEECL) plans to invest $1bn in the next five years to further tap into the unconventional energy resources of India, the UK-listed company’s CEO Prashant Modi said in a statement July 5. Arizona Cardinals Jersey
Indian shipping body issues new rules for LNG vessels
Indian Register of Shipping (IRClass), an independent ship classification society providing ship classification and certification, has released a new set of rules for LNG (liquefied natural gas) fuelled coastal and inland vessels in addition to its already established rules for ocean going ships. In a significant move, which underscores the increasing importance of using cleaner fuels, these rules will help the maritime stakeholders to promote environment friendly fuels for coastal as well as inland vessels, said a statement from IRClass. The rules for gas fuelled vessels have been developed based on a study of the various international requirements such as the European Standard laying down Technical Requirements for Inland Navigation Vessels (Estrin), the IMO IGF Code and consultations with various stakeholders, it said. IRClass has also developed rules for pleasure crafts above 24 m length which are in addition to its rules for pleasure crafts below 24 m length already published earlier. These new rules are developed based on several national standards as well as ISO standards, it added. In view of the growing ownership of pleasure crafts (yachts) in India there was a pressing need to address the regulatory aspects of such crafts. With the development of these rules, IRClass is also planning to target key markets in Europe, it stated. Connor Barwin Jersey
HPCL, ONGC merger moves Cabinet, but deal may still take 1 year after nod
The Department of Disinvestment has reportedly issued a Cabinet note on the proposed amalgamation of the state-run refiner Hindustan Petroleum Corp Ltd with the giant oil explorer Oil and Natural Gas Corp, amid news reports of the Prime Minister’s Office’s disappointment on the slow progress in the government’s quest to create a huge energy PSU of the global scale. However, a deal may still not be immediately in sight, as the handover of HPCL to ONGC may take one year even after the government securing the Cabinet nod, hindi news channel CNBC Awaaz reported citing unidentified sources. Earlier last week, ET Now had reported that the PMO, which is firm on merging the two oil companies, had expressed unhappiness with the slow pace of movement on the proposed sale of HPCL to ONGC. CNBC Awaaz reported that the government will seek an in-principle approval from the Cabinet for sale of 51% equity stake in HPCL to ONGC. It added that in the process of handover of HPCL’s management control to ONGC, the disinvestment will be done via a strategic stake sale. As has been reported earlier, the government is said to be planning to combine HPCL with ONGC by December this year by selling its 51.1% stake in the former to the latter for $4.5 billion (about Rs 29,000 crore). The Ministry of Petroleum and Natural Gas is learnt to be in favour of adopting a subsidiary model for combining the two oil PSUs instead of merging the companies, making ONGC the parent company of HPCL, the reports had said then, adding that the government would decide final model of combining in few months. Further, the government will form a Group of Ministers (GoM) to frame guidelines, price and timeframe for the share sale, CNBC Awaaz reported, adding that Finance Minister Arun Jaitley, road minister Nitin Gadkari and oil minister Dharmendra Pradhan will be part of the proposed GoM. A vertically integrated oil company would be better able to absorb the fluctuations in the global crude oil prices, as when the exploration unit will suffer from falling prices, the refining unit will benefit, and vice versa. Earlier in February, Finance Minister Arun Jaitley proposed setting up an integrated oil PSU (public sector undertaking) by merging companies with synergy in order to match the scale of the global oil giants. India’s largest oil and gas exploration and production company ONGC said then that the proposed integration of oil PSUs will be a big positive for the sector as an integrated company is well positioned to handle volatility in crude oil prices. Negotiation power of a large oil company is better with its business partners, it had said. Jake Gardiner Womens Jersey
ONGC Videsh to acquire 30% petroleum participating interest in Namibia
ONGC Videsh has signed definitive binding agreements with Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc, on 28th June 2017 for acquiring 30 percent participating interest in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B and related agreements (License) out of Tullow’s existing participating interest of 65 percent in the license. Pancontinental Namibia (Pty) Limited with 30 per cent Participating interest and Paragon Oil and Gas (Pty) Limited with 5 per cent participating interest are other partners in the License. Tullow is the operator of the License and shall continue to remain operator after acquisition by ONGC Videsh. The acquisition is subject to satisfaction of customary conditions precedents including approvals of Namibian regulatory authorities and joint venture partners. The completion of the present transaction would mark ONGC Videsh entry in Namibian offshore and is consistent with its strategic objective of adding high impact exploration and production assets to its existing E&P portfolio. Johnathan Joseph Authentic Jersey
ONGC rescinds pacts with Schlumberger, Halliburton
State-run ONGC has rescinded the initial pacts for outsourcing production from its ageing fields in Gujarat and Assam to international service providers Schlumberger and Halliburton after the oil ministry objected to the contract being handed over without bidding. Oil and Natural Gas Corp (ONGC) had on December 7 last year signed Summary of Understanding (SoU) to give its Kalol field in Gujarat to Halliburton and Geleki field in Assam to Schlumberger to help in raising production above the current baseline output. Though the agreements were signed in presence of Oil Minister Dharmendra Pradhan during the bi-annual Petrotech Conference, the ministry felt it was not proper to give away such contracts on nomination basis, sources privy to the development said. The ministry in no uncertain terms told ONGC that such nomination contracts will not be acceptable, they said. The ONGC board, which had approved the MoU, thereafter too took a similar and cancelled the SoUs, they said.The company last week invited expression of interest (EoI) from service providers for undertaking production enhancement from its mature oil and gas fields. The 15-year Production Enhancement Contract (PEC) will require the oilfield service producer to commit to invest in capital expenditure and operating expenditure to increase production form the existing ‘baseline’ output. HomeIndustry ONGC rescinds pacts with Schlumberger, Halliburton ONGC rescinds pacts with Schlumberger, Halliburton State-run ONGC has rescinded the initial pacts for outsourcing production from its ageing fields in Gujarat and Assam to international service providers Schlumberger and Halliburton after the oil ministry objected to the contract being handed over without bidding. By: PTI | New Delhi | Published: July 5, 2017 3:09 PM 7 SHARES Facebook Twitter Google Plus The ONGC board, which had approved the MoU, thereafter too took a similar and cancelled the SoUs, they said. (Reuters) State-run ONGC has rescinded the initial pacts for outsourcing production from its ageing fields in Gujarat and Assam to international service providers Schlumberger and Halliburton after the oil ministry objected to the contract being handed over without bidding. Oil and Natural Gas Corp (ONGC) had on December 7 last year signed Summary of Understanding (SoU) to give its Kalol field in Gujarat to Halliburton and Geleki field in Assam to Schlumberger to help in raising production above the current baseline output. Though the agreements were signed in presence of Oil Minister Dharmendra Pradhan during the bi-annual Petrotech Conference, the ministry felt it was not proper to give away such contracts on nomination basis, sources privy to the development said. The ministry in no uncertain terms told ONGC that such nomination contracts will not be acceptable, they said. The ONGC board, which had approved the MoU, thereafter too took a similar and cancelled the SoUs, they said.The company last week invited expression of interest (EoI) from service providers for undertaking production enhancement from its mature oil and gas fields. The 15-year Production Enhancement Contract (PEC) will require the oilfield service producer to commit to invest in capital expenditure and operating expenditure to increase production form the existing ‘baseline’ output. “The remuneration model will be a tariff which is to be paid in $per barrel of oil and $per million British thermal unit for gas for any ‘incremental’ hydrocarbon produced and saved over the baseline,” the EoI said. “Baseline shall be prepared by ONGC and vetted and certified by a third party of international repute.” All the oil and gas produced will belong to ONGC and the service provider arrangement is being entered into to get the best technology available, sources said. Under the terms of SoUs signed in December last year, Schlumberger and Halliburton were to invest capital and share technical expertise in the two stagnant but producing oilfields. If they are able to increase output, they were to be paid a pre-determined fee on each additional barrel of crude oil produced. Besides Schlumberger and Halliburton, ONGC was also in talks with Weatherford International and Baker Hughes Inc for similar arrangement for other fields. But after the oil ministry disapproval, all such deals are off and all such contracts will be entered only when a service provider offers the highest increase in output in a competitive bidding, sources said. Demetri Goodson Womens Jersey
Indian oil refiners tap spot crude market to feed increased capacity
Indian companies have stepped up purchases of high-sulphur crude oil from the Middle East and Russia in the spot market to feed demand from expanded refining capacity, trade sources said. Four refiners in the world’s third largest crude importer bought 9 million barrels of Middle East and Russian crude loading in July-August via spot tenders last month, drawing down excess supplies in the market after China’s demand slowed. Refiners such as Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) have opted to buy more spot crude as they gradually ramp up output, rather than increase long-term crude supplies, the sources said. IOC expects to run its new 300,000-bpd Paradip refinery at full capacity this year, while BPCL plans to ramp up output at its Kochi refinery to 310,000 bpd by September after an expansion, they said. An IOC spokesman said his company’s high-sulphur crude oil purchases from the spot market have risen as operations at the Paradip refinery stabilised. IOC has bought 5 million barrels of high-sulphur oil for August, he said, adding “there could be more”. “Refiners are buying heavier grades to increase middle distillate and fuel oil yields” as refining profits for these products have strengthened, said Ehsan Ul Haq, director at London-based consultancy Resource Economics said. Indian refiners have also increased spot purchases during a period of abundant supplies, allowing them to react quickly to market changes and pick up cargoes when prices are competitive. IOC said in May it plans to buy 68 percent of its oil needs from term suppliers, down from 80 percent earlier. Mangalore Refinery and Petrochemicals Ltd (MRPL) and BPCL have bought Omani and Bahraini crude while IOC bought 5 million barrels of Abu Dhabi, Iraqi and Russian Urals crude. [CRU/TENDA] Bharat Oman Refineries Ltd (BORL) also purchased 1 million barrels of Russian Urals, traders said. MRPL and BORL seldom buy high-sulphur crude while IOC and BPCL have increased purchases this year, they said. Sellers include Litasco, the trading arm of Russian producer Lukoil, Sinochem Corp and Vitol, traders said. The companies did not respond to e-mails and calls seeking comments. BPCL could buy more sour crude this week as it has issued a tender seeking oil for August arrival, a trader said. ALL-TIME HIGH India is buying more Brent-linked Urals crude this year, with imports to hit an all-time high of 4 million barrels in July, after the price gap between Brent and Dubai narrowed to multi-year lows of below $1 a barrel. Global crude markets remain oversupplied, weighing on Brent and West Texas Intermediate prices, despite a deal among members of the Organization of the Petroleum Exporting Countries and some non-OPEC producers to extend output cuts. Some Indian refiners are also exploring the feasibility of importing U.S. crude, sources said, joining other Asian buyers such as China and Japan that stepped up imports from the United States this year on weak WTI prices. IOC issued its first ever tender seeking sour crude from the United States and Canada, trade sources said on Tuesday. Still, India’s crude demand is expected to fall early in the fourth quarter as several refineries are scheduled to shut for maintenance. Brian Elliott Womens Jersey
Diesel imports intensify, may be curbed by monsoon
India’s diesel imports have intensified with state-owned refiner Hindustan Petroleum Corp (HPCL) entering the spot market on Tuesday to seek its seventh cargo of the fuel for July, trade sources said. But imports could slow as monsoon season starts in India, they added. HPCL is seeking 60,000 tonnes of 40ppm sulphur gasoil for delivery into Vizag over July 20-25 in a tender that closes on July 5. This is the state-owned company’s seventh cargo requirement for July, though it was not clear if all previous tenders have been awarded. HPCL-Mittal Energy Ltd (HMEL) was expected to start up its 230,000 barrels per day Bathinda refinery in northern Punjab after it shut for planned maintenance in late April, but the refinery is still not back in operation, an industry source said, though this could not immediately be confirmed. India’s diesel demand has been strong despite the start of monsoon season due to several power outages which has boosted diesel demand in back-up power generators, an industry source said. It is still early days in India’s monsoon season. Once rains intensify, demand for the fuel in the agriculture sector could slow, the source added. Oil pricing agency S&P Global Platts said on Tuesday it will include Singapore’s Jurong Aromatics Corp as a loading point in its pricing process known as Market on Close for gasoil and jet fuel from Aug. 1. Sellers in the MOC process will be able to nominate JAC as a loading point for cargoes traded on a FOB Straits basis, it said, following a review last month. Myanmar’s refined fuel consumption growth is set to outperform the rest of Asia from 2017 to 2026 due to factors including strong economic growth, a rapid rise in car ownership and a surge in aviation traffic, BMI Research said in a note. Already the sixth-largest net fuel importer in Asia, Myanmar’s imports are expected to grow to over 345,000 barrels per day (bpd) by 2026 from an estimated 212,000 bpd in 2017, it added. Chukwuma Okorafor Womens Jersey